Bob and Ben

are students at Berkeley College. They share an apartment that is owned by Ben.

Ben is considering subscribing to an Internet provider that has the following packages available:

Package		Per Month
A.	Internet access		$85
B.	Phone services		15
C.	Internet access + phone services		90

Bob spends most of his time on the Internet ("everything can be found online now").

Ben prefers to spend his time talking on the phone rather than using the Internet ("going online is a waste of time"). They agree that the purchase of the $90 total package is a "winwin" situation.

Requirements

1.	Allocate the $90 between Bob and Ben using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method.
2.	Which method would you recommend they use and why?